Discounts. Rose Valley Clinic (Exhibit 5.17) is going to take better advantage of credit terms offered by suppliers. The clinic has negotiated a 3 percent discount for all supplies purchased beginning...

Discounts. Rose Valley Clinic (Exhibit 5.17) is going to take better advantage of credit terms offered by suppliers. The clinic has negotiated a 3 percent discount for all supplies purchased beginning in 20X1, if paid in full during the month of service, with the credit terms listed below. How does this change the answer to problem 44?

Timing of payment for 20X0 supply purchases

50 percent: month purchased

30 percent: first prior month

15 percent: second prior month

5 percent: third prior month